Trump’s policies will likely incur costs, including for the US; This raises questions about its longevity. Trade wars, anti-immigration policies and the rejection of multilateralism will be on the agenda. Other countries and regions are preparing for the new reality, with varying levels of adaptability, says Philippe Dauba-Pantanacce, Senior Economist at Standard Chartered.
Ideology or pragmatism?
“Who will win the argument between ideology and pragmatism? Trump’s chosen appointees and advisors are firm believers in protectionism, anti-immigration policies and maximum pressure against Iran; it appears that the team is being formed with a view to fully implementing the agenda of Trump. But his political instincts could ultimately be obstructed by the economic costs of his maximalist campaign promises, particularly higher inflation.”
“That could become a political liability before the 2026 midterm elections; the party that controls the White House tends to lose in midterm elections. Ideologues will likely be willing to accept the upfront costs of their political choices for the sake of longer-term outcomes. But political cycles are more short-term in nature, and pragmatists might be willing to make a course correction if the economic costs become impossible to ignore. potentially higher inflation, pressure on economic sectors struggling with the reduction of immigrant workers, or a stock market correction.”
“While execution is uncertain, some fundamental tenets of Trump’s worldview are unlikely to change. On the foreign policy front, he has decisively rejected multilateralism and is likely to take an adversarial approach or refuse to engage in multilateral agreements, commitments and institutions. This has implications for global climate policy, the UN, the Bretton Woods institutions and US relations with the EU. US foreign policy is likely to return. focus on bilateral discussions, where the US enjoys the most influence given its size and influence. However, this does not mean that agreements will not be reached. We look at the various regions to see what Trump 2.0 could mean for the rest of the world.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
